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    Project Identification

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    Aditya
    The document discusses the classification, identification, and process of capital expenditure projects. It defines a project as a capital investment or asset in the balance sheet that is depreciated over its life. Projects can involve physical, monetary, or intangible assets and can be strategic, tactical, mandatory, replacement, expansion, or diversification investments. Identifying the right project involves generating ideas, conducting feasibility analyses of the market, technical, financial, and economic/ecological aspects, and selecting the highest rated project after preliminary screening.

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    Project Identification

    Uploaded by

    Aditya
    2K views14 pages
    The document discusses the classification, identification, and process of capital expenditure projects. It defines a project as a capital investment or asset in the balance sheet that is depreciated over its life. Projects can involve physical, monetary, or intangible assets and can be strategic, tactical, mandatory, replacement, expansion, or diversification investments. Identifying the right project involves generating ideas, conducting feasibility analyses of the market, technical, financial, and economic/ecological aspects, and selecting the highest rated project after preliminary screening.

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    The document discusses the classification, identification, and process of capital expenditure projects. It defines a project as a capital investment or asset in the balance sheet that is depreciated over its life. Projects can involve physical, monetary, or intangible assets and can be strategic, tactical, mandatory, replacement, expansion, or diversification investments. Identifying the right project involves generating ideas, conducting feasibility analyses of the market, technical, financial, and economic/ecological aspects, and selecting the highest rated project after preliminary screening.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    2K views14 pages

    Project Identification

    Uploaded by

    Aditya
    The document discusses the classification, identification, and process of capital expenditure projects. It defines a project as a capital investment or asset in the balance sheet that is depreciated over its life. Projects can involve physical, monetary, or intangible assets and can be strategic, tactical, mandatory, replacement, expansion, or diversification investments. Identifying the right project involves generating ideas, conducting feasibility analyses of the market, technical, financial, and economic/ecological aspects, and selecting the highest rated project after preliminary screening.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 14

    PROJECT

    CLASSIFICATION,
    IDENTIFICATION &
    PROCESS
    MEANING OF PROJECT

     Project is also known as Capital Investment or Capital


    Expenditure or Capital Project.

     Capital Expenditure, from accounting point of view is an


    expenditure which is shown as an asset in the balance
    sheet.

     This asset, except in case of non depreciable asset like land


    is depreciated over its life.
    SITUATIONS INVOLVING CAPITAL
    EXPENDITURE DECISIONS

     Insurance Company planning to install a computer


    system for information processing.

     A graduate student planning to buy a bike.


    IMPORTANCE OF
    CAPITAL EXPENDITURE

     Long term Effect

     Irreversibility

     Substantial Outlay
    DIFFICULTIES IN
    CAPITAL EXPENDITURE

     Measurement Problem

     Uncertainty

     Temporal Spread
    CLASSIFICATION OF PROJECT
    or CAPITAL INVESTMENT
     Physical Asset
     Monetary Asset
     Intangible Asset
     Strategic Investment
     Tactical Investment
     Mandatory Investment
     Replacement Investment
     Expansion Investment
     Diversification Investment
     R&D Investment
    PROJECT IDENTIFICATION

     For establishing a successful venture, the search


    for promising project idea is the first step.
     Key to success lies in getting into right business at
    right time.
     For identifying opportunities in business, it
    requires:
    1) Imaginative
    2) Sensitivity
    3) Environment Changes
    4) Realistic Assessment
    FEASIBILITY STUDY FOR
    PROJECT IDENTIFICATION
     Generation of Ideas
     Initial Screening
     Is the Idea Promising?
     If Yes, plan feasibility analysis and If No, Terminate it.
     Conduct Market Analysis
     Conduct Technical Analysis
     Conduct Financial Analysis
     Conduct Economic & Ecological Analysis
     Is Project Worthwhile?
     If Yes, prepare funding proposal and If No, Terminate it.
    PROCESS INVOLVED IN
    PROJECT IDENTIFICATION
     Generation of Ideas:
    Ideas with the help of which product or services made have better quality and
    low price.

     Monitoring the business environment:


    1) Economic Sector
    2) Government Sector
    3) Technological Sector
    4) Competition Sector
    5) Supplier Sector
    Cont…

     Corporate Appraisal:
    Corporate strengths & weaknesses are essential for
    identifying investment opportunity which can be
    profitable.

     Profit Potential of Industries / Michael Porter Model:


    1) Rivalry among existing firm
    2) Threat of new entrants
    3) Threat of substitute products
    4) Bargaining power of buyers
    5) Bargaining power of suppliers
    Cont…
     Scouting for Project Ideas :
     Project ideas are key to success. So proper analysis, examine,
    review, investigation of industry should be done.
     Trade fairs can also be attended to get new ideas.

     Preliminary Screening : It involves


    1) Availability of inputs
    2) Adequacy of market
    3) Cost
    4) Risk level
    5) Government policies
    Cont…

     Project Rating Index :


    All the proposals are given rating on rating scale.

     Selection of best appropriate project :


    Project that gets the highest rank is selected.
    I AM NOT EXPECTING
    ANY QUERY !!!!!!!!!
    Thank
    You

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